Can I retire at age 40 with 631,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $631,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.1%
1 years$52,107$51,643$51,190$50,748$50,317$49,874
2 years$25,796$25,315$24,850$24,398$23,960$23,515
3 years$17,026$16,544$16,079$15,632$15,201$14,766
4 years$12,642$12,161$11,702$11,262$10,842$10,420
5 years$10,013$9,535$9,081$8,650$8,242$7,835
6 years$8,260$7,786$7,339$6,918$6,521$6,130
7 years$7,009$6,539$6,099$5,687$5,304$4,928
8 years$6,071$5,605$5,172$4,771$4,400$4,040
9 years$5,342$4,880$4,455$4,064$3,705$3,361
10 years$4,759$4,301$3,884$3,503$3,157$2,828
11 years$4,282$3,829$3,419$3,049$2,715$2,402
12 years$3,885$3,437$3,034$2,674$2,353$2,054
13 years$3,549$3,106$2,711$2,361$2,052$1,767
14 years$3,262$2,823$2,436$2,096$1,799$1,528
15 years$3,013$2,579$2,199$1,869$1,584$1,327
16 years$2,796$2,366$1,994$1,674$1,400$1,156
17 years$2,604$2,179$1,814$1,504$1,241$1,011
18 years$2,434$2,014$1,656$1,355$1,103$886
19 years$2,281$1,866$1,516$1,224$984$778
20 years$2,145$1,734$1,392$1,109$879$684
21 years$2,021$1,615$1,280$1,006$786$603
22 years$1,909$1,508$1,180$915$705$532
23 years$1,806$1,410$1,089$833$633$470
24 years$1,713$1,321$1,007$760$569$416
25 years$1,627$1,240$933$694$512$368
26 years$1,548$1,165$865$635$461$326
27 years$1,474$1,097$804$581$415$290
28 years$1,406$1,034$747$532$375$257
29 years$1,343$975$695$488$339$228
30 years$1,284$921$648$448$306$203
31 years$1,230$870$604$411$277$180
32 years$1,178$824$563$378$250$160
33 years$1,130$780$526$348$226$142
34 years$1,085$739$491$320$205$127
35 years$1,042$701$459$295$186$113
36 years$1,002$666$430$271$168$100
37 years$964$632$402$250$152$89
38 years$929$601$377$230$138$80
39 years$895$571$353$212$125$71
40 years$863$543$331$196$114$63
41 years$832$517$310$181$103$56
42 years$803$493$291$167$94$50
43 years$776$469$273$154$85$45
44 years$750$447$256$142$77$40
45 years$725$427$241$131$70$36
46 years$701$407$226$121$64$32
47 years$678$388$212$112$58$28
48 years$657$371$200$104$52$25
49 years$636$354$188$96$48$22
50 years$616$338$176$88$43$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $631,000, adding $6,633 every year, while hoping to spend $52,951 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 80/7/13 Blend
39$631,000$631,000$631,000$631,000
40$702,204$668,761$658,980$756,096
41$717,489$645,191$624,717$768,885
42$732,559$618,691$587,531$775,387
43$747,335$589,062$547,268$780,992
44$761,731$556,093$503,769$785,586
45$775,646$519,561$456,864$789,044
46$788,972$479,230$406,379$791,228
47$801,585$434,850$352,131$791,985
48$813,347$386,157$293,927$791,150
49$824,104$332,874$231,569$788,539
50$833,683$274,706$164,847$783,952
51$841,893$211,341$93,544$777,167
52$848,521$142,451$17,433$767,942
53$853,328$67,690$0$756,009
54$856,051$0$0$749,926
55$856,396$0$0$744,701
56$854,036$0$0$742,297
57$848,610$0$0$737,178
58$839,715$0$0$728,991
59$826,907$0$0$717,343
60$809,690$0$0$701,798
61$787,518$0$0$681,872
62$759,784$0$0$657,031
63$725,818$0$0$626,684
64$684,876$0$0$590,173
65$636,136$0$0$546,776
66$578,689$0$0$495,688
67$511,529$0$0$436,023
68$433,543$0$0$366,801
69$343,503$0$0$286,936
70$240,050$0$0$195,231
71$121,682$0$0$90,361
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0